Transcript
Automated transcript · Written by software from the replay's audio. It can mishear names and figures; the replay is the record.
0:04 Hello everyone and thank you for tuning in for this live New Break Resources event. Today we have their CEO Bill Love with us on the call to hear his commentary on the latest draw results. We'll be going over some visuals, we'll be progging other things And then we can open it up to the room for any questions. So please do submit your questions in the chat. And as always, this event is being recorded and can be viewed shortly after we conclude. With that said, Bill, welcome. Thank you for taking the time out of your day. The floor is yours.
0:30 Well, good morning. So I'll start with the location map. And this is as Sunday, we filled in another 700
0:45 hectares in here. So our total land position now, if my calculations are right, is 28,437 hectares. Drill the 2026 drilling, or the white sort of pickets here and here. Matachewan-Young-Davidson is about here. Timmins is up here and Kirkland Lake is over there. This is the South end of the project. And I promise not to be too geological, but these are the key rock types. This is cyanide, which the reason we picked up this project from the beginning And with my history on this project, going back to a previous company that had it, was the potential to find Gold in the cyanide and the attractiveness of that is purely economic.
1:58 I've had a long experience with intrusion-hosted Gold systems going back to as a student in 1978, when I had a tour of the CanFlow mine, which was the first Barrick operation in Quebec. And the key thing with any intrusive granite, diorite, cyanide, is the rock is very competent. Meaning that when it's exposed to structure, it fractures out in large blocks. And Young Davidson, of course, is an example. And they just released their first quarter results.
2:47 And Young Davidson generated $75 million in free cash flow at an average grade of only 1.75 grants per ton and that's simply because unlike you know gold deposits in other rock types, maybe volcanics or ultramafics. It's the competence of the host rock means that it's a bulk tonnage rock moving exercise. And you don't have the same sort of chasing narrow veins. So from the very beginning, our target was to, you know, there's some trenches right there that are historical and there's Gold veins on surface.
3:37 The Zavitz Gold zone is over here. What is now apparent is, and I'll get to our drilling, but these 2 holes were drilled by SGX Resources in 2012. They had broad areas of anomalous Gold at 12m of 0.5g in this hole. They had 24m of 0.084g per ton in this hole. Those are not economic grades, but it tells you there's about a kilometer of distance from where our zone is up here, down to these surface Gold zones, which have Gold samples that Niranda took in the 60s, and we did a lot of sampling in 2022.
4:42 There's clearly a very broad kilometer long zone that's in the southern end of the Sinai that thus far has exhibited anomalous gold. Now what's happened from our drilling is that is now changed.
5:07 So everyone sees the PowerPoint. So that's the Zavod zone. We drilled 2 holes down here, which were meant to target a Gold intersection in the Randa hole 65.1 that was sort of 6g plus 3m, but that Gold intersection was never validated. And it is not in the logs. And there's always been, you go to the resident geos and I've been to successive resident geos in Timmins and Kirkle Lake and nobody knows if the intersection's real or not. We didn't find any Gold in 2601, which is here in 2602.
5:59 But the Funny thing is, the rocks down here are completely different than the rocks up here. The rocks in the Zavitz Gold Zone are the green rocks, which are mafic volcanics, and the cyanide, and down here they're felsic rocks. And that's, you know, those are geological terms, but what it means is the mafic volcanic rocks are basalts, like you see in Hawaii, you know, when you see the pictures of the volcanic eruptions and the salt just flows, because it's very low in silica and high in magnesium and iron. Whereas down here, we saw completely different rocks, and the rocks down, particularly in 2601, are like Mount St. Helens. And for, you know, those of us that are a bit older remember the eruption of Mount St. Helens in Washington State in 1980 and the whole mountain blew up.
7:05 So when we were logging 2601 especially, we're seeing these felsic rocks, which are also commonly indicative of volcanogenic mass of sulfide. So we didn't think we had anything. And then we hit we did multi element. And This is a section from the log of 2601. And we had sheets and sheets of assays of multiple elements, including the ones that you look for copper, lead, zinc, for a mass of sulfide. And, You know, I also with other geos You know thought we'd been through look through all the sheets and a fellow who owns the core shack and Tim ins who I won't say his name because he'll face unrelenting abuse from the Timmins geos, happened to look at the core and he found a bunch of shvalarite. Shvalarite is the zinc-bearing mineral.
8:16 And so greater than 10,000 ppm zinc is what's the actual value of the zinc is greater than 1%. Now, these are anomalous, they're not
8:34 material zinc values, But what it does say is the VMS environment that we were sort of thinking about when we saw the rock types does in fact exist. So this just came to my attention on Saturday and the man who owns the Korshak, I'll refer to him as the man who owns the Korshak, was sharp enough and he's, I'll be polite because he'll get after me he's older than I am but he was sharp enough to see the sphalerite which is the zinc mineral in the core and we missed it we a population of you know several geos in the multi-element. So it tells you, you never know.
9:27 And you always got to keep looking, whether it's your assay sheets or your core, particularly your core, because things come up that you don't see the first time. Anyway, this is the Zavitson, and the darker lines are where we drill.
9:47 And So this is a slide that I put together from LeapFrog, which is, this is the LeapFrog model. This is the presumed contact of the cyanide. These are mafic volcanics and these are all of the holes that we drilled. And we drilled on sections, So each of these, this one, this one, this one, this one, this one, were all 3 holes per collar. So you were progressively drilling deeper off each collar. And I put in the results that we've announced and the strongest Set was this section but what's interesting now is our You know our targets on this the yellow is leapfrog you know modeling the our target zone. The yellow is LeapFrog modeling the Gold zone, but it's not been updated, so It's bigger than what the yellow thing implies here, but it dips towards the Cyanide.
11:08 It goes down towards Cyanide. For the first time in our drilling, we've had Gold in the cyanide. We had Gold in 9, 10, 11 and this is a single hole 12. And the importance of that is, it's very important because What it says is that the mineralizing, the gold mineralizing event is not confined only to the mafic volcanic. It's also present in the cyanide. And that means that the gold event is highly probably younger than the youngest rock, and the youngest rock is the cyanide.
11:58 And that's the Young-Davidson model. And, you know, that's, it's a, you know, sort of vindication for our selection of this project because again you know an ore body in the cyanide you just don't need the same grade that you need in mafic volcanics because it's so broad that you end up, as Young-Davison just produced in their first quarter numbers, you can make immense amounts of cash at very low grade. So what this says is this whole 1203, that's the SGX resources drilling.
12:50 You see there's this anomalous Gold. It's not economic, but you've now got Gold in this immediate area, immediate section. You've got Gold here, you've got Gold here, and you've got Gold up here in the Cyanide. So the logical place to drill next is where this zone dips into the cyanide. Because the mineralization is clearly related. The other thing that we've done in the past, and this is slightly technical, but we've done multi-element on the core from the Discovery Holes 2504 and 2505.
13:45 We did multi-element on 2504. There's a theme that's emerging out of the Ontario Geological Survey, which is Eben Hastie. And he's been going through gold deposits in the Abitibi. And he's found that these younger gold events, i.e. Younger than the youngest rock, have high bismuth and tellurium. And the bismuth and tellurium is high in the cyanide, in our case, and we know that to be true, and also high in the mafia volcanic. So it tells you that this is all one gold event.
14:35 But the other thing that's very interesting that we noticed in the core in 9, 10, 11, and 12 is the gold mineralization is associated with very relatively low amounts of pyrite, chalcopyrite, and occasionally galena, compared to the very high recrystallized pyrite in the Mayfair Volcanic. And that's exactly the same, you
